Representatives from all of Korea’s courts attend a gathering at the Judicial Research and Training Institute in Goyang, Gyeonggi, where they deliberated whether to recommend impeachment of judges implicated in a major power abuse scandal. [NEWS1]

Judges from courts across the country gathered Monday and voted to recommend impeachment of any judges implicated in a major power abuse scandal from the past administration that has rocked one of the country’s three branches of government.

A total of 114 sitting judges convened at the Judicial Research and Training Institute in Goyang, Gyeonggi, as part of a regular meeting of representatives from all courts in Korea.

But also on the agenda was a discussion of an unprecedented: whether to strip judge status from any sitting judge involved in a snowballing scandal involving favors for the impeached and removed Park Geun-hye administration.

The resolution was submitted by representatives of the Daegu District Court’s Andong Branch, who argued that impeachment was the appropriate way to respond to threats to the independence of the judiciary by the unconstitutional actions of judges, including Supreme Court justices.

The resolution was adopted by a majority following an hour-long debate. For some reason, only 105 judges voted.

While the resolution itself has no binding power, the decision of the judicial representatives could pressure the National Assembly into passing a law to punish extreme wrongdoing by judges with impeachment.

After the power abuse scandal came to light last year, judges have been scrambling to find a way to restore the public’s faith in the judiciary - though not all agree that impeachment is the way to do that. Sources from the judicial convention say there was significant opposition to the resolution.

Monday’s gathering took place as prosecutors were in the process of grilling one of those top judges accused of abusing his power: former Supreme Court Justice Park Byoung-dae.

“As chief of the National Court Administration (NCA), I have worked selflessly,” Park said as he stepped into the Supreme Public Prosecutors’ Office in southern Seoul. “It pains me that many judges were hurt and I must be subject to inquiry.”

Park Byoung-dae held the post of NCA chief from 2014 to 2016 and is believed to have helped former Chief Justice Yang Sung-tae win presidential favor by exerting influence in high-profile trials.

The most prominent of the trials involved a damages suit filed by Korean plaintiffs against Japanese companies that had forced them to work during World War II. Park Byoung-dae allegedly met former Blue House Chief of Staff Kim Ki-choon in October 2014 to discuss how to deal with the trial in line with Park Geun-hye’s wishes.

The NCA under his leadership is also believed to have drafted a document in February 2015 that suggested ruling in favor of Won Sei-hoon, a former intelligence chief on trial for spying during an election, as a “conciliatory gesture” toward the Blue House.

The fact that judges on the country’s highest court colluded with the executive branch would constitute a violation of the constitutional principle of separation of powers. In return, Yang allegedly expected Park Geun-hye’s help in establishing a new appellate court to cut down on the Supreme Court’s heavy workload.

In addition, Park Byoung-dae and Yang are suspected of keeping a blacklist of judges based on their political leanings, among a list of other alleged crimes.

Park Byoung-dae’s deputy in the NCA, Lim Jong-hun, has been in custody since Oct. 29 as a key suspect in the case. Prosecutors believe Lim carried out much of the administrative work in committing the misconduct under Park’s orders and supervision. The two were listed as accomplices over 30 times in Lim’s written arraignment following the latter’s indictment last week.

Prosecutors say they plan to bring in another former Supreme Court justice, Ko Young-han, by the end of this month. And depending on how the investigations into these justices proceed, prosecutors are likely to finally summon the central figure in the case - Yang Sung-tae himself.

BY SHIM KYU-SEOK [shim.kyuseok@joongang.co.kr]]]>2018-11-19 20:05:15+09:00In a meeting about household loan management Monday, the Financial Services Commission (FSC) and the Financial Supervisory Service concluded that banks’ lending for real estate has stabilized thanks to the tougher restrictions.

Mortgages taken out in the first 10 months shrunk nearly 41 percent from 44.5 trillion won ($39.5 billion) last year to 26.3 trillion won.

The amount of loans taken out since the beginning of this year are equivalent to 60 percent of last year’s.

But as the government restrictions successfully put a lid on borrowed money for real estate from banks, borrowers - particularly small business owners - have turned to more expensive and riskier loans.

The amount of new non-mortgage loans, including unsecured loans, increased 14.4 percent from 29.9 trillion won in the first ten months last year to 34.2 trillion won this year.

“The growth rate of other loans and borrowing by small businesses and the increasing burden on borrowers are major household debt risks,” said Sohn Byung-doo, the FSC secretary general, who presided over the meeting.

Last month alone, 4.2 trillion won of non-mortgage loans were borrowed from banks, the largest amount in one month since data started being compiled in its current form in 2008.

The situation was the same at nonbanking financial institutions, such as savings banks and cooperatives, which lend at higher interest rates. In Korea, savings banks are similar to consumer finance companies.

Last month, mortgages borrowed from nonbanking financial institutions fell 100 billion won compared to a year ago, while other loans grew 2.8 trillion won.

Full details about these loans, including percentage decreases and increases, will be announced by the Bank of Korea (BOK) later this week.

The government has been worrying about high levels of household debt, especially with the possibility of the Korean central bank raising the key interest rates during the next monetary policy meeting scheduled for Nov. 30.

Any hike in interest rates will make loans more expensive to repay.

As of the second quarter of this year, household debt, including credit card purchases, reached 1,493.2 trillion won, a record amount. Analysts believe this figure will eventually surpass 1,500 trillion won.

The BOK is scheduled to announce the most recent estimated household debt on Wednesday.

Banks have already been raising interest rates on loans.

Despite the BOK freezing its key interest rate for a year, the cost of funds index, which is used as a base rate for new mortgage interest rates, has been rising.

Although banks’ interest rates for mortgages averaged around 3.57 percent, there is speculation in the market that it may go as high as 5 percent.

“[When interest rates go up,] corporate investments and household spending could contract, and there is a possibility of insolvency, especially among those with low credit scores,” said Cho Young-moo, a researcher from the LG Economic Research Institute.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]]]>2018-11-19 20:04:00+09:00For the Donald Trump White House, the high-level meeting would be a litmus test to determine whether to hold a second summit with the Kim Jong-un regime, the source said on the condition of anonymity.

It is not known precisely how North Korea is responding. Andrew Kim, head of the CIA’s Korea Mission Center, tried to figure that out last week when he visited South Korea to meet local officials, a different source told the JoongAng Ilbo.

Kim was said to have asked questions about Seoul’s stance on a U.S.-North high-level meeting and “feel North Korea out” after the regime called off a planned high-level meeting with the United States earlier this month.

The U.S. State Department announced on Nov. 6 that U.S. Secretary of State Mike Pompeo was to meet Kim Yong-chol, vice chairman of the Central Committee of the North’s ruling Workers’ Party, in New York on Nov. 8. The two envoys were supposed to continue denuclearization talks and discuss a second summit between Trump and North Korean leader Kim Jong-un.

But on Nov. 7, the department said the meeting was off and gave no explanation why. U.S. Ambassador to the UN Nikki Haley said on Nov. 8 that it was the North who canceled the meeting, apparently “because they weren’t ready.”

Rep. Park Jie-won, a four-term South Korean lawmaker in the minor-left Party for Democracy and Peace, wrote on Facebook Sunday that he expected a U.S.-North high-level meeting to be held this week at the earliest or around Nov. 28 at the latest, without revealing his sources. The meeting, he wrote, will be a “watershed” moment for a second North-U.S. summit.

Pundits surmise it won’t be easy for both countries to find common ground as the United States has been pressing the North to surrender a complete inventory of its nuclear stockpiles and related facilities, whereas the North insists that a formal declaration ending the 1950-53 Korean War, which ended in an armistice, not a peace treaty, has to come first.

Trump said during a Fox News interview published Sunday that he’s “very happy” with the way his administration is dealing with the North.

Last Friday, the state-run Korean Central News Agency reported on leader Kim Jong-un supervising “a newly developed ultramodern tactical weapon test” at a defense institute, the first time in a year that the leader was officially described as overseeing a weapons experiment.

In an editorial published Monday by the state-run newspaper, Rodong Sinmun, Pyongyang accused Washington of interfering in inter-Korean affairs and putting the brakes on cross-border projects. The article urged Seoul to distance itself from Washington, claiming that North-South relations cannot improve with South Korea relying on outside forces.

Minority shareholders of Samsung BioLogics are responding to the financial regulator’s ruling last week to suspend trading in the stock, lodging a suit against the company’s accounting firm and the company as well as filing petitions.

After the Financial Services Commission (FSC) slapped a fine on Samsung BioLogics and suspended its trading on the main Kospi on Nov. 14 due to accounting fraud by the biopharmaceutical company, shareholders are now stuck with the shares - for as long as a year.

It could take that long for the regulator to determine whether the company’s initial public offering was based on genuine accounting and financial statements. The company will also have to correct its financial statements. Under the worst-case scenario, the stock could be delisted.

The minority owners of Samsung BioLogics hold a significant number of shares. According to Chaebul.com, a portal dealing with the chaebol, the number of shares held by minority shareholders is estimated to be 9.602 million, or 14.53 percent of the total, as of Nov. 14. At 334,500 won ($297) a share, that translates into about 3.21 trillion won.

As of Monday, Samsung BioLogics ranked eighth in terms of market capitalization on the Kospi.

Hankyul, a Seoul-based law firm, said last week its Samsung BioLogics shareholder clients will file a suit claiming damages against the company as well as against its accounting firm, Samjong KPMG, later this month at the Seoul Central District Court.

The firm is representing nearly 300 plaintiffs, and 200 more could join.

“[Our clients] have been dealt a blow because they bought shares that they wouldn’t have bought or would have bought at lower prices if it had not been for the accounting irregularities,” said Kim Kwang-joong, a lawyer in charge of the case at the law firm.

He added that the suit could take two years.

Shareholders of other companies engaged in accounting misdeeds have filed suits in the past and received compensation. In the case of Hansol Seentec, currently in rehabilitation, they won in a similar case in 2016 and received some 70 percent of the damages claimed.

Some shareholders made postings on the petition bulletin board run by the presidential office. When a single petition is signed by 200,000 people in 30 days, the Blue House is supposed to make an official response.

One petition claims that the FSC’s decision could “distort the market and break the confidence in related industries.”

Another petitioner said, “Samsung BioLogics was listed without any problem, and the FSC considered the accounting procedure lawful, but now that the administration has changed, the company is considered to have violated accounting rules. What kind of a country is this?”

Some postings said that Samsung BioLogics should be delisted. One petition said, “Korea and its financial authority must set the right precedent to prevent the country from becoming financially corrupt.”

BY SEO JI-EUN [seo.jieun@joongang.co.kr]]]>2018-11-19 20:23:34+09:00

A pedestrian walks by a BBQ restaurant in Seoul on Monday. Major fried chicken franchise BBQ increased prices for three of its most popular fried chicken dishes by 1,000 won to 2,000 won (＄0.89 to ＄1.78). [YONHAP]

Local chicken franchise BBQ increased prices of three best-selling products by as much as 12.5 percent effective Monday.

BBQ is one of the top three local chicken franchises. The company attempted to raise product prices twice last year but failed due to government pressure or backlash from the public.

The last time BBQ hiked product prices was in 2009.

BBQ’s Gold Olive chicken was increased to 18,000 won ($16) from 16,000 won, Jamaica Leg Barbeque went to 19,500 won from 17,500 won, and Sir. Fried chicken jumped to 19,900 won from 18,900 won. They are the chain’s top three best sellers.

Some BBQ franchise stores charge customers an additional delivery fee of 2,000 won. This means the price of the three products targeted could break 20,000 won for some BBQ customers.

“The main motivation for the hike was requests from store owners,” said a company spokesman. “The matter was decided through a discussion committee comprised of franchise owners and headquarters staff.”

Franchise headquarters frequently raise the price of ingredients sold to franchise stores when raising the retail price of products, but the spokesman said this time that the hike would only apply to customer prices.

“Raising ingredient prices was discussed during the committee meeting, but in the end, we made a decision to discuss ingredient prices later, once the customer price is well established,” the spokesman said.

Rising prices of chicken products is a sensitive issue for Korean customers. Fried chicken is one of the most popular home delivery foods in the country, and attempts to charge more for chicken meals in the past have been met with strong complaints, including boycott movements.

BBQ made announcements to raise prices twice last year, in May and June, but it eventually withdrew the decision both times due to public backlash and pressure from the government.

The Fair Trade Commission (FTC) launched investigations into BBQ after it announced increases. Industry insiders said this was a signal to cancel the price changes.

Other top chicken franchises Kyochon and BHC haven’t decided to raise prices. But based on their past actions, increases remain a possibility.

Last year, they both announced adjustments upwards following BBQ, but retreated and lowered prices after the FTC started its probes.

The chicken franchise owners say that price increases are a matter of survival.

Rents have steadily increased while the government raised the minimum wage by 16 percent this year and is planning to raise it by another 10 percent next year. The increasing popularity of delivery apps over the last few years has also contributed to the cost pressure.

BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]]]>2018-11-19 20:22:49+09:00

KT is using its IT and communications technologies on a smart farm for the physically handicapped in Sharjah, the mobile operator said on Monday.

Sharjah is the third most populated city in the United Arab Emirates (UAE) and the smart farm is the first that KT has built outside of Korea.

KT celebrated the launch of the smart farm with Sharjah City for Humanitarian Services, a state agency that supports rehabilitation, education and social welfare for disabled people.

KT and Korea’s Disabled Enterprise Business Center agreed to help train staff for the operation over the coming year to help create jobs for the those with disablities and enhance their quality of life.

“The smart farm will hope disabled people become more independent and step up agricultural productivity in the desert climate,” said KT Chairman Hwang Chang-gyu at an opening ceremony for the smart farm in Sharjah.

Agricultural productivity is relatively low in the UAE due to its climate and the country has been trying to ease its reliance on agricultural imports. Emirates Airline has spent $40 million to build the world’s largest vertical farm in Dubai.

KT’s smart farm has a cooling system that uses minimal energy and recycles water. The facilities have skid-free floors and automatic doors for workers in wheelchairs.

It has been four years since KT launched a smart farm business that puts to use various technologies. Its first smart farm for disabled people was started in 2016 in Namyangju, Gyeonggi.

KT said it hopes the smart farm in the UAE serves as a foothold for exports of its smart farm solutions.

BY SEO JI-EUN [seo.jieun@joongang.co.kr]]]>2018-11-19 20:21:51+09:00

Workers at a construction site in Seoul. Many of the people taking on this sort of employment are hired day-to-day, and the total numbers have been shrinking rapidly. [NEWS1]

The economically vulnerable were the most affected in the latest round of job losses, especially laborers working in positions that require no specific skills.

The number of contract jobs and day-to-day hires also continues to shrink.

The minimum wage hike, which was supposed to improve the livelihoods of the economically vulnerable, has so far created challenges for those most in need of work.

Last month, the number of people in basic-labor jobs totaled 3.56 million, 93,000 fewer than in the same month a year ago, according to Statistics Korea. This was the biggest drop since the government began collecting the relevant data in 2013.

The number of people occupying such jobs has fallen in each of the seven months since April, when there were 19,000 fewer jobs than the year before. The situation has only become more dire over time. In August, 50,000 basic-labor jobs were lost compared to the same period a year earlier. The following month, the number was down 84,000 year-on-year.

The category includes construction, gas stations and delivery work.

Last month, the number of people working in “quality” jobs increased. Office jobs were up 117,000 in October compared to the same month a year earlier. Management positions jumped 66,000.

Regular-employee job numbers were up 350,000 compared to a year ago, whereas in the temporary job category - which includes those hired for less than a year - the total was down 138,000. Day-to-day employment, which includes employment lasting less than a month, fell 13,000.

Temporary job numbers have been on the decline for 26 consecutive months, since Sept. 2016, while day-to-day hiring has been falling for 12 consecutive months, since last November.

In the temporary job category, the year-on-year jobs losses have been more than 100,000 since May.

“While economic sluggishness has had an influence, the hike in the minimum wage had a direct impact on these low-paying jobs,” said Sung Tae-yoon, a Yonsei University economics professor. “Basic-labor jobs, which employ many of the most vulnerable, are disappearing rapidly.”

In meeting with reporters on Nov. 9, Finance Minister nominee Hong Nam-ki hinted that the government has no plans to change the overall policy regarding the minimum wage.

“I think that the government has already adjusted the speed in implementing the minimum wage hike since President Moon [Jae-in] mentioned that it would be difficult to keep his campaign promise,” Hong told reporters.

During the 2017 presidential race, President Moon promised to raise the minimum wage to 10,000 won ($8.88) per hour by 2020. Following the 16 percent increase in 2018, the minimum wage is set to increase 10.9 percent to 8,350 won next year.

The government has been criticized for ignoring the need for major policy changes, relying instead on temporary measures in trying to solve the current job crisis, such as by increasing the number of public servants.

According to Bank of Korea, the public administration and national defense-related economy grew 3.7 percent in the third quarter compared to a year ago. This is the sharpest growth since the 4 percent growth in the fourth quarter of 2009.

The bank added that the public administration and national defense economy grew largely because of hiring in the public sector.

The government plans to hire 174,000 additional public employees and create 59,000 temporary positions in the public sector, such as internships, through 2022.

“Increasing jobs only in the public sector will not turn around the worsening job situation,” said Pyo Hak-gil, a Seoul National University honorary professor of economics. The government “needs to focus on helping the private sector increase investment and jobs.”

“This diesel engine’s CO2 emissions are 15 percent less than the petrol engine [with the same 2.0-liter capacity],” said Jochen Betsch, head of advanced engineering diesel at Daimler, who gave an extensive presentation on the upgraded diesel engine at a press event Friday in Incheon.

Even while shedding 16 percent of its weight, the new engine added 24 horsepower to generate a maximum of 194 horsepower and torque of 40.8 kg.m.

Dimitris Psillakis, CEO of Mercedes-Benz Korea, said a version with a gasoline engine will launch in the first half of next year, followed by a plug-in hybrid engine.

“A diesel engine has its strong points with performance and even CO2 emissions,” Psillakis said. “It is important to offer all the options out there to our customers.”

The press event Friday included an extensive presentation on the upgraded diesel engine, a move that many saw as a reference to rival BMW diesel models that experienced a spate of fires in Korea last summer. Psillakis, however, denied such speculation, saying the “customers have the right to know about the improved features of the new diesel engine.”

Korean shares ended higher Monday thanks to institutional buying as analysts predicted a slower pace in U.S. interest rate hikes for next year. The Korean won depreciated against the U.S. dollar.

The main Kospi rose 8.16 points or 0.39 percent to close the session at 2,100.56. Trading volume was moderate at 268.93 million shares worth 4.61 trillion won ($4.09 billion).

“When considering the comments from the White House and the dovish remarks within the U.S. Federal Reserve, Chairman [Jerome] Powell will likely try to find a common ground with the market,” said Gwak Hyun-soo, an analyst at Shinhan Investment, in a report Monday. “In such a case, global stock markets will most likely recover from the recent fall by the end of the year.”

Foreign investors continued to offload shares in the main index, selling a net 92.8 billion won. Retail investors also sold a net 60.6 billion won. Meanwhile, institutional investors were net buyers for the sixth consecutive session, picking up a net 162.3 billion won worth of shares.

The secondary Kosdaq also rose 11.95 points, or 1.73 percent, to end the session at 702.13. The tech and bio-heavy index was helped by a 0.78 percent rise in the U.S. Nasdaq Biotechnology Index on Friday.

The Korean won closed at 1,128.60 won against the greenback up 0.10 won from the previous session.

BY CHAE YUN-HWAN [chae.yunhwan@joongang.co.kr]]]>2018-11-19 20:19:31+09:00Between March and September, the FSS examined 178 peer-to-peer (P2P) lending firms for the soundness of their lending operations. P2P lending firms connect investors and lenders directly online without requiring them to go through banks.

On Monday, the financial regulator reported that 20 of them may have misappropriated over 100 billion won ($88.72 million) in total. The FSS forwarded cases to prosecutors for investigation and also relayed the information to police.

Executives of three out of the 20 suspected firms have already been arrested or tried, according to the FSS.

Polaris Funding, whose executives were found guilty of fraud and sentenced to four years in jail, uploaded pictures of fake gold bars along with a fake certificate of authenticity and claimed they were collateral. The firm was able to secure 5 billion won of funds from around 500 people, though there was no real borrower and no loan was made.

The executives of Anareits, a popular real estate investing platform, were arrested on charges of misappropriating 30 billion won worth of funds from around 4,000 investors. The CEO of Roof Funding, once the third largest player in the market, was arrested for misappropriating 40 billion won from 8,000 investors.

The names of the 17 other firms whose executives have not been formally charged were not revealed.

“We are not disclosing the names of the rest of the firms as investigations are still ongoing,” said Moon Sang-seok, a spokesman for the FSS.

The FSS reported a wide variety of fraudulent activities. At least two firms lied about their office addresses while another had employees pretend to be borrowers to secure more funds from investors.

“Most of the firms that have misappropriated funds have used the money to pay back investors and invest in the firm’s other businesses,” read the FSS report. “An executive from one firm used funds to buy shares, while another used the money to purchase virtual currency.”

“Many firms, including some of the market’s top 10 players, kept the default rate at zero by using funds from their own company accounts to pay overdue loans,” it continued.

There are currently no laws on P2P lending.

BY KIM EUN-JIN [kim.eunjin1@joongang.co.kr]]]>2018-11-19 20:16:33+09:00The chain announced Monday that it signed a franchise agreement with Robinsons Retail, the No. 2 retail company in the Philippines, to roll out No Brand and Scentence in the country. Both are Emart in-house lines.

“Under the deal, 50 No Brand and 50 Scentence stores will be established in main shopping malls and department stores at the Philippines by 2020,” Emart said in a statement.

Robinsons will be in charge of store operations, while Emart will be paid a licensing fee and profit from the export of products to the stores.

No Brand is an Emart label that sells daily necessities and some food items. Around 70 percent of No Brand goods are manufactured by local small enterprises. Although it was started as an in-house line, No Brand has been so successful that stand-alone stores have been opened.

Emart has established stores overseas, but this is the first time No Brand has been taken abroad. With partner Robinsons, the local retailer plans to co-develop No Brand products for the Philippine market and possibly export them for sale at Emart stores in Vietnam and Mongolia.

For Scentence, Emart’s in-house beauty brand, the Philippine project is the brand’s second overseas move. It opened in Saudi Arabia in July. Emart says it plans to develop Scentence beauty products that fit well with the climate of the Philippines.

No Brand and Scentence are both part of Shinsegae Vice President Chung Yong-jin’s strategy to develop “specialized stores” that focus on a particular product category instead of selling a little of everything as is done in discount chains.

The discount chain market is saturated in Korea and is facing mounting regulations.

“The deal to launch No Brand and Scentence in the Philippines is meaningful to us in that it diversifies our global portfolio for specialized stores,” said Lee Joo-ho, who heads Emart’s global business.

BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]]]>2018-11-19 20:16:02+09:00

Hyundai Motor finished second for the third year in a row in the World Rally Championship (WRC) series, which ended Sunday with the last event in Australia.

The carmaker took the top spot at the World Touring Car Cup (WTCR), which was held in Macau and also concluded Sunday.

In the WRC, the Korean carmaker managed to narrow the gap with the leader, but wasn’t able to achieve victory.

Hyundai Motor said Monday that its team, named Hyundai Shell Mobis, came in second at the 13th running of the WRC. The carmaker’s comprehensive point total was 368.

Japanese carmaker Toyota took the first spot, earning 331 points in total. Ford and Citroen came in third and fourth respectively.

Hyundai Motor has been participating in the WRC since 2014. The race is part of its long-term plan to upgrade its image from value-for-money car maker to dynamic enterprise.

Developing the high-performance division is a key item on the agenda for the auto group’s chief vice chairman, Chung Eui-sun. He hopes to strengthen the brand in the competitive and choosey European auto market.

Hyundai Motor set up a separate division dedicated to high performance cars in March and appointed Thomas Schemera, from BMW’s M brand, to run the business.

In 2014, the carmaker finished fourth in the WRC. It was third in 2015 and second in 2016 and 2017.

In WRC events, the carmaker participates with its own team. In WTCR events, it supplies its models to professional racing teams. It races in the “Customer Motorsports” category with Audi, Volkswagen and Ford as some of its competitors.

The WTCR winner was led by Yvan Muller in Hyundai Motor’s i30 N TCR vehicle. It scored 562 points and was followed by the BRC team, also racing in a Hyundai i30 N TCR vehicle. Its total was 559 points.

“This year, Hyundai Motor was able to show motorsports fans around the world its high-performance car technology,” said Thomas Schemera, head of Hyundai Motor’s high performance and motorsport division in a written statement.

“It was also the year that showed the Hyundai Motor N brand could reach a high level in terms of technology in a short period of time.”

Officials from the Ministry of Land, Infrastructure and Transport compare the new license plate designs at the Sejong government complex on Nov. 16. [YONHAP]

The Ministry of Land, Infrastructure and Transport is conducting an online survey on its website through Dec. 2 on the design of passenger vehicles’ license plates, as a new numbering system will be introduced next September.

The Transport Ministry decided to introduce a new numbering system for private and rented passenger vehicles last July as the number of available registration numbers will run out by the end of next year. The inclusion of an extra number in the new numbering system is expected to increase available registration numbers to around 210 million.

People who take the survey can choose from five different designs, including keeping the current design.

The four new choices all include a blue design format on the plate’s left side with the Korean flag symbol on top, the abbreviated “KOR” on the bottom and involve a font change and/or an inclusion of a symbol in the center of the plate.

The first new choice is the current design with the Korean flag symbol and the “KOR.” The second adds a symbol in the center of the plate. The third has a new font without the symbol, while the final choice has both the font change and the symbol.

The Transport Ministry explained that the new designs were the result of joint research between professional road safety institutes. The Ministry also said the new designs include features such as a hologram to prevent counterfeiting and a reflecting film that improves nighttime visibility.

Should a new design be decided, the ministry said it is planning to give drivers a choice of continuing to use the current design as the new film coating could increase the cost of the plate.

“We will meet the various requests of the public by improving vehicle registration plates, and work towards establishing a safe driving environment by implementing measures to prevent counterfeit plates and nighttime accidents,” said a Transport Ministry official.

The Ministry said the survey will be complemented by a Gallup Korea poll conducted over the same period, from yesterday to Dec. 2. The final design will be announced by the end of this year based on the survey and poll results.

Kakao Pay hopes to entice its growing number of users to invest in the products, which are mostly peer-to-peer investments.

The unit offers payment services on the popular messenger Kakao Talk. It is taking aim at a client base that is underserved by established investment companies: young tech-savvy people with fewer assets than other investors.

“If you want to get advice from a private banker, you have to have a net wealth of around 100 million won [$88,707] to 1 billion won,” said Ryu Young-joon, CEO of Kakao Pay. “But we think that people with less money should be allowed to invest. This is why we set the minimum investment at 10,000 won and will offer them with mid-risk products.”

Ryu said that simple access to investment goods is what distinguishes its service from traditional investment institutions.

“You don’t need to register because the information is stored on your Kakao Talk, and you also don’t have to visit a branch,” the CEO said.

The CEO also unveiled a plan to expand its payment service to other countries. The first target market will be Japan, since the neighboring country is pushing for wider adoption of mobile payments ahead of the 2020 Tokyo Olympics.

China will be added later, according to Ryu.

The announcement came after Kakao Pay bought a local securities company in a bid to extend its range of financial services and products last month.

Kakao Pay bought Baro Investment & Securities, a small brokerage, last month from Shinan, a local real estate developer.

Defending the missus - Gyeonggi Gov. Lee Jae-myung makes an official statement to the press concerning a police investigation into his wife’s alleged defamation of his rivals over Twitter. [YONHAP]

Gyeonggi Gov. Lee Jae-myung struck back at mounting calls for his resignation in an official statement on Monday, denying the police’s conclusion that his wife defamed his political rivals over Twitter.

“My wife is not the owner of the Twitter account,” Lee told reporters in front of the Gyeonggi provincial office in Suwon. “Despite the fact that there is overwhelming evidence to the contrary, the police assembled a handful of tangential hints to conclude my wife is the offender.”

On Sunday, the Gyeonggi Nambu Provincial Police Agency announced that the Twitter account belonged to Kim. The account attacked political rivals of Lee, such as President Moon Jae-in and Rep. Jeon Hae-cheol. Lee ran against Moon in last year’s Democratic Party presidential primary and against Jeon in the Gyeonggi gubernatorial election this June.

Some posts included highly offensive language that mocked the suicide of former President Roh Moo-hyun and the victims of the Sewol ferry sinking.

Online activists had long claimed the account belonged to Kim, citing a photo uploaded by the handle that they claimed could only have been obtained by someone very close to the governor. The probe only began in April after Jeon filed an official complaint with the police against the account on the grounds of defamation.

The conclusion to the eight-month probe on Sunday incited a political earthquake, with opposition politicians raining down criticism on the governor and demanding that he resign. Even members of Lee’s own party, the ruling Democratic Party, have suggested that he should step down if the allegations prove to be true.

Police officially handed the case over to the Suwon District Prosecutors’ Office on Monday and recommended that prosecutors indict Kim on charges of defamation and violation of election laws. In his statement to the press, Lee called the investigation a “dirty political attack,” claiming it was aimed at preventing him from doing his job as governor.

“If the police had put in a tenth of the effort they are putting into my investigation to look into the Samsung BioLogics case or corruption among the elite, the country would be ten times better than it is now,” Lee added.

When the police asked for his indictment on multiple criminal charges like abuse of power and spreading false information last month, Lee claimed they were politically biased against him.

“If they want to hurt me, then they should spit on me,” Lee said. “Don’t bring my innocent wife into this fight.”

Lee’s claims were immediately dismissed by the Commissioner General of the National Police Agency, Min Gap-ryong, who said the police’s conclusion on Sunday was the result of a fair and legal investigation.

“Additional investigations will be conducted through a variety of means,” Min told the press at a regular briefing at the police headquarters in central Seoul. “I believe the truth will be revealed in this process.”

BY SHIM KYU-SEOK [shim.kyuseok@joongang.co.kr]]]>2018-11-19 20:03:09+09:00Lee’s meeting with Kim Ju-young, head of the Federation of Korean Trade Unions (FKTU), at the National Assembly came as the other major labor union, the Korean Confederation of Trade Unions (KCTU), is planning to carry out a nationwide strike on Wednesday to protest a number of labor policies pushed by the Moon Jae-in administration, such as allowing companies to increase or decrease their workers’ maximum working hours depending on the amount of work needed at a given time.

For example, a company that makes air conditioner parts could increase its working hours to more than 52 hours a week during the high-demand summer season and then correspondingly decrease them during the winter season. The FKTU is considered more moderate than KCTU, which is known for its aggressive street rallies.

“During its rally on Oct. 8, the FKTU raised concerns over the issue of flexible working hours and minimum wage. We will have an in-depth discussion on such issues with [the FKTU president and leadership members] at today’s policy consultative meeting,” said Lee.

Kim of the FKTU said that union members had serious concerns over the Moon government’s “backpedaling” on its initial promises to improve labor rights.

“Less than a year after the government took office with an agenda of setting up a society that respects labor rights, it withdrew its campaign promise to increase the minimum hourly wage to 10,000 won ($8.86) by 2020,” said Kim. He also argued that a policy that would allow companies to increase or decrease working hours at times of high or low work demand was “threatening to nullify the new 52-maximum workweek.”

The Monday meeting came as tensions between the Moon administration and labor unions are brewing. This has come as a surprise, as Moon ran a campaign that promised labor-friendly policies.

There is some degree of conflict between the government and the FKTU, which strongly objects to the government’s flexible approach to the 52 maximum workhours. Tensions are much higher between the government and the KCTU.

One labor policy supported by the FKTU but fiercely opposed by the KCTU involves a joint corporation planned by Hyundai Motor and the Gwangju Metropolitan Government.

Under the proposed agreement between the two, a car assembly line will be built in Gwangju by 2020 at the earliest. Hyundai Motor plans to invest 50 billion won in the 700-billion-won project. Hyundai will invest in the city-owned plant under the condition that it will pay Gwangju assembly workers around half of what it pays other Hyundai assembly workers. Once the factory is operational, it is expected to employ 10,000 workers and create 100,000 more jobs indirectly.

While the FKTU has embraced the proposal, the KCTU has criticized it, saying that it will eventually worsen conditions for other workers. This has further strained relations with the Moon government, which is trying to help Hyundai and Gwangju cut a deal.

BY KANG JIN-KYU [kang.jinkyu@joongang.co.kr]]]>2018-11-19 20:01:41+09:00DP floor leader Hong Young-pyo, Liberty Korea Party (LKP) floor leader Kim Sung-tae and Bareunmirae Party floor leader Kim Kwan-young met at the National Assembly to search for middle ground on issues that the DP and the two oppositions disagree over, but failed.

The LKP announced it would boycott all parliamentary activities, casting doubt on the prospects of approving the 470.5 trillion-won ($416.4 billion) budget bill by the Dec. 2 deadline.

The assembly frequently fails to meet the legal deadline for the budget, although it did in 2015 and 2016.

One major disagreement is the opposition’s demand that a parliamentary probe be launched into alleged nepotism in hiring at Seoul Metro, a public corporation run by the Seoul Metropolitan Government, which operates Seoul Metro lines No.1 through 8 and which around 10 million people take on a daily basis. DP floor leader Hong called the demand “over the top.”

Opposition suspects the DP is refusing the probe because it worries it will ensnarl Seoul Mayor Park Won-soon when speculation abounds that he is preparing to run for president in 2022.

“The DP is damaging a country already reeling from nepotism allegations with its overt efforts to protect Mayor Park,” said LKP floor leader Kim after his meeting with his ruling party counterpart.

“If the DP continues such disregard for the people, the LKP will have no choice but take a bold step as the No. 1 opposition party,” warned Kim, alluding to the LKP’s continued boycott of the parliamentary activities.

Kim of the Bareunmirae Party also criticized the DP for its rejection of a parliamentary probe into the Seoul Metro scandal. “Why is the DP so afraid of accepting the probe?” he asked.

Suspicions of irregular recruitment at Seoul Metro arose earlier this year when it was revealed that 108 among the 1,285 workers upgraded earlier this year from long-term contract positions to full-time positions were found to be relatives of existing employees. The possibility that they took the contract jobs after getting inside information about the upgrades from their relatives did not sit well with the public at a time of worsening youth unemployment. In June this year, the number of Koreans aged 25 to 45 without jobs reached 338,000, the highest in 19 years, according to government data.

Seoul Mayor Park Won-soon, right, talks with Kim Ju-young, president of the Federation of Korean Trade Unions, at a rally organized by the umbrella labor union in Yeouido, western Seoul, in front of the National Assembly on Saturday. [YONHAP]

Opposition lawmakers condemned Seoul Mayor Park Won-soon’s support of unions’ protest against the Moon Jae-in administration’s flexible working hour policy at a rally over the weekend.

“Seoul will be a city where labor unions can have their say,” Park said, addressing union members on a stage near the National Assembly on Saturday. “It will be a city where laborers can form unions and stay active.”

Park said that advanced countries like Finland tend to have a higher rate of labor union membership, adding that a “higher rate of labor union participation tends to translate into higher economic competitiveness of the country and standards of living of the people.”

Park protested alongside members of the Federation of Korean Trade Unions. The federation, which hosted the rally, said about 30,000 people took part in the rally.

Korea’s umbrella labor unions have been protesting the policy because they believe it will worsen their working conditions.

Moon and political leaders agreed earlier this month to allow companies to increase or decrease maximum working hours depending on the amount of work for up to six months.

For example, a company that makes air conditioner parts could its increase working hours to more than 52 hours a week during the high-demand summer season and corresponding decrease them during the winter.

The agreement came as businesses struggle to adapt to the shorter workweek, which cut maximum weekly working hours to 52 from the previous 68. Opposition lawmakers criticized Park for taking part in the rally.

“It doesn’t make sense that the mayor from the ruling party would take part in the rally with labor unions in opposition to the Moon Jae-in administration’s policy,” said the Liberty Korea Party (LKP) floor leader Kim Sung-tae in a party meeting on Monday. “If Park is trying to appeal to the unions for his own political gains, he had better watch out. I don’t think he wants to disappoint his DP colleagues just yet.”

“Park made the wrong move,” said the Bareunmirae Party chairman Sohn Hak-kyu on Monday. “Politicians need to know where to show up and not. The ruling and opposition parties are about to work together on reforming the labor market, and Park made the wrong move as the mayor of Seoul.”

“I think Park may be trying to use this movement to boost his standing as a possible presidential candidate in the future,” said LKP Rep. Kim Jin-tae.

The Seoul city government played down Park’s participation in the rally.

“The mayor’s participation had been planned for a while,” a city government official told the JoongAng Ilbo.

South Koreans stage a rally praising North Korean leader Kim Jong-un in front of the KT building in Gwanghwamun Square, central Seoul, on Sunday. The rally was organized by the Paektu Praise Committee, a radical activist group. Participants in the rally wear flower headpieces as they hold up signs welcoming Kim’s possible visit to Seoul. [NEWS1]

A pro-North Korean group staged a rally praising North Korean leader Kim Jong-un in Gwanghwamun Square, central Seoul, on Sunday, despite being reported multiple times for violating the National Security Act.

The rally was organized by the Paektu Praise Committee, a radical activist group. It was not stopped by police even after conservative groups filed complaints against the organization for praising the North Korean leader, which is a violation of South Korea’s National Security Law.

About 50 members of the Paektu Praise Committee participated in Sunday’s rally. During the protest, members praised Kim in speeches and dedicated a dance performance in his name. Some of the speakers were children and teenagers.

“I was deeply touched after seeing the people of North Korea welcome [South Korean] President Moon Jae-in and after witnessing the careful consideration put into [Moon’s] visit by Kim and his wife Ri Sol-ju,” said one teenage speaker. “We also want to enthusiastically welcome Kim when he comes to visit.”

During Moon’s third summit with Kim in Pyongyang in September, the South Korean president invited Kim to visit Seoul.

Political remarks against the United States were also a favorite topic in Sunday’s speeches. A speaker who introduced himself as a Sungkyunkwan University student said that “in the past, the reason why [a North Korean leader’s possible visit to South Korea] was frequently stopped was because of the United States’ strong political power.” The student said that Kim’s proposed visit to Seoul “is proof that North and South Korea’s political power overpowers the United States’ will to keep the two Koreas apart.”

One speaker took to the mike to announce that “the National Security Law no longer exists” while also denouncing conservative political figures like Rep. Na Kyung-won and Hong Joon-pyo for their views on North Korea.

The Paektu Praise Committee was organized on Nov. 7 to encourage Kim’s visit to Seoul. The group has since been reported to the Supreme Public Prosecutors’ Office three times by conservative civic groups like the Taegeukgi Revolution National Movement Corps for violating the National Security Law.

Conservative groups protested the pro-North Korean rally on Sunday.

“The core value of progressive politics is human rights, but it is ridiculous that the committee is siding with Kim who suppresses the North Korean people’s human rights,” said Park Gyeol, a representative from the conservative Dawn of Liberty party.

The Paektu Praise Committee dismissed these concerns. “[I don’t see why] we can’t welcome our own kind [but can] welcome international singers whenever they come to Korea,” said a member of the Paektu Praise Committee. The group also said that they plan to organize events nationwide in Busan, Daegu and Gyeonggi.

Last week, the government flew 200 tons of tangerines to North Korea on an Air Force plane. The top-secret transfer resembled a military operation more than a gift-giving gesture.

The Blue House said the tangerines were a gift to the North given in return for the mushrooms Pyongyang sent to Seoul following the third inter-Korean summit in September. An administration spokesman said the tangerines, grown in the warm climate of Jeju Island, would demonstrate the South’s compassion to the people of North Korea.

But history suggests that the Moon Jae-in administration’s approach to the North is marred by a fundamental misunderstanding.

Last week was not the first time that tangerines were given to the North. The Kim Dae-jung administration delivered the fruit in 1999, when it was trying to get Pyongyang to come to the negotiation table. Under the Kim government, as well as the subsequent Roh Moo-hyun administration, around 18,100 tons of Jeju carrots were included along with the 48,328 tons of tangerines sent to the North.

The justification given was that the residents of the North would be able to get a taste of Jeju, which would help reconciliation between the Koreas. But in this process, the government spent around 23 billion won ($20.5 million) to buy and transfer the produce.

South Korea’s intelligence agency soon discovered how the tangerines were consumed once they reached the North. Reports were received that the fruits made their way to key elite figures in the North’s ruling Korean Workers’ Party and the military. There was also evidence that Kim Jong-il, the country’s former leader, was dispensing tangerines to subordinates to secure their loyalty. As for the carrots, sources said they were used to make juice and used in dishes served for party cadres at the Workers’ Party dining hall.

When the Lee Myung-bak administration came to power in 2008, it soon shut down aid to the North. According to a source inside the Unification Ministry, then-Unification Minister Hyun In-taek, who was from Jeju himself, came to the conclusion that it was meaningless to send luxuries like tangerines to the North.

This precedent gives analysts reasons for concern when looking at the most recent transfer. Many believe Kim Jong-un, too, will behave like his father and distribute the fruit to gain the loyalty of the establishment. While the Blue House spokesman argues that the sheer size of the transfer was meant to give a taste of tangerines to average resident of the North, intelligence analysts suggest that they will likely go to the powerful.

One defector from the North said that it was impossible to imagine the North Korean government giving away something like tangerines to the people. So far, we have no knowledge of how the tangerines are being consumed in the country. The Unification Ministry says it expects the North will use them wisely.

State-run media in the North has so far been silent on the transfer, and the South Korean government says it has received no response from the North.

The tangerines were sent in cardboard boxes with no labels on them. Without further explanation or context, it would be impossible to know that they were sent from the South. Analysts say the boxes should have had labels identifying them as Jeju products. When the South sent aid to the North in the form of rice in the past, they were in 40-kilogram (88-pound) sacks labeled with the words “Republic of Korea” in large font. The fact that the tangerine boxes were blank suggests the current government is catering to the North’s whims.

Criticism is also mounting regarding the use of military planes for the transfer. Four Air Force-type C-130 carrier planes were used for the operation from Sunday to Monday.

The Blue House said that use of a chartered civilian plane was impossible due to current international sanctions on the North. But they still had the option to send the tangerines via a land route using civilian trucks, rather than getting the military involved.

The most serious issue revolves around the timing of the government’s decision to send the tangerines. The public reacted with fury after it was revealed that Ri Son-gwon, chairman of the North’s Committee for the Peaceful Reunification of the Country, insulted South Korean business tycoons over lunch during the inter-Korean summit in Pyongyang last September.

The Blue House, however, was only concerned about picking tangerines when they are at their ripest in November. The fact that senior Blue House officials know when tangerines are most tasty while being oblivious to public opinion testifies to this government’s lack of public awareness.

It is no surprise, then, that the Moon government’s slogan of “people first,” is being lampooned as “the North Korean people first” these days. The government appears to care more about the North and Kim Jong-un than the economic situation back home.

The criticism isn’t about the willingness to share the South’s delicacies with the people of the North. Sharing what is plentiful and helping one another in times of hardship is a genuine virtue and may prove to be a solid foundation for inter-Korean cooperation. But everything has its time, and the Blue House must listen to public opinion back home.

To receive the tangerines at its airport in Pyongyang, the North Korean government sent the deputy chief of the Committee for the Peaceful Reunification of the Country, the same agency whose chief attacked the South’s business leaders in September. The North’s leaders probably were laughing at the fact that the South sent a bounty of tangerines, in spite of the insults it received. One thing is for sure, this is not the kind of inter-Korean reconciliation that the people have in mind.

BY LEE YOUNG-JONG [shim.kyuseok@joongang.co.kr]]]>2018-11-19 19:58:54+09:00The Defense Acquisition Program Administration (DAPA) held an opening ceremony for the Defense Export Promotion Center (DExPro) at its headquarters in Gwacheon, Gyeonggi, as Korea seeks to develop future growth engines in the defense industry.

“The opening of this center signals that DAPA is making a shift towards the export sector from its mission focused on raising local defense firms,” Wang Jung-hong, the DAPA chief, told a press conference.

The center will provide defense firms with a comprehensive package of support, such as export-related administrative procedures and other services, DAPA said. As part of efforts to boost arms exports, Seoul is seeking to increase the number of countries that it has a memorandum of understanding on defense industry cooperation with to 50 by 2022 from the current 39. Concerns have persisted about a slowdown in the defense industry, which has relied heavily on the limited domestic market amid increasingly fierce competition in the global market dominated by companies from the United States and other advanced countries.

Korea has recently been pushing to reshape its defense industry into an export-driven one through a series of measures such as deregulation, policy improvement and expansion of global cooperation.

It is aiming especially at helping local firms get a foothold in Southeast Asian countries, in tune with its New Southern Policy, which is aimed at strengthening ties with those countries for enhanced economic and diplomatic cooperation.

To improve its support for arms exports, DAPA plans to install a division for international cooperation next week.

Yonhap]]>2018-11-19 19:58:29+09:00

Some of the KBO’s award winners pose with their trophies after the end-of-season award ceremony in Seoul on Monday. [YONHAP]

The 2018 KBO end-of-year awards ceremony brought a thrilling season to a close on Monday.

To no one’s surprise, the best home run hitter in Korean baseball was crowned the league’s top player. Slugger Kim Jae-hwan of the Doosan Bears earned the MVP award for the 2018 KBO regular season. The outfielder collected 487 points out of a possible 888 points in a media vote.

The players earned points for top-five votes: the first-place vote was worth eight points, followed by four points for the second-place vote and so forth. Kim’s Doosan teammate, pitcher Josh Lindblom, finished second with 367 votes, followed by Park Byung-ho of the Nexen Heroes with 262 points.

In his eighth season, Kim played in 139 games and led all players with 44 home runs and 133 RBIs - both career highs. The 30-year-old also led the KBO with 346 total bases while ranking second in slugging percentage with .657 and on-base-plus-slugging (OPS) with 1.062.

Kim batted .334 and scored 104 runs, becoming the first KBO player to post at least a .300 batting average, 30 homers, 100 RBIs and 100 runs scored in three consecutive seasons.

Kim put up these big numbers despite playing his home games at Jamsil Stadium in Seoul, the biggest and least hitter-friendly ballpark in the KBO. After Park won back-to-back MVPs in 2012 and 2013, the KBO has now seen five different MVPs in five seasons.

Kim is the sixth Bear to win an MVP award and the third position player from the franchise after Kim Sang-ho in 1995 and Tyrone Woods in 1998. All three players were the home run leaders in their MVP seasons.

“I can’t think of anything to say, other than to thank everyone,” Kim said after receiving his award at a ceremony in Seoul. “I know the best way to repay my fans for their support is to keep doing the absolute best I can on and off the field.”

Kim’s MVP award this year is the peak of a career arc that included a failed doping test in 2011. He tested positive for a banned substance before the Baseball World Cup that year and was suspended for 10 games in the 2012 season.

The KBO’s Rookie of the Year also wasn’t hard to guess. Kang Baek-ho of the KT Wiz earned a total of 514 voting points out of possible 555 points in a media vote to win the Rookie of the Year. Of a total of 111 votes, 99 went for Kang. He is the first player from the Wiz to win the rookie award.

“Everyone on the coaching staff and my teammates helped me so much along the way,” Kang said after receiving his trophy. “I am not going to be content with just winning this award. I want to become a player who can get better every season.”

This season, Kang was the dominant rookie in the league. He completed the regular season with a batting average of .290, 29 home runs, 84 RBIs and 108 runs. Kang also set the record for most home runs by a KBO rookie drafted out of high school. The previous record was set by Kim Jae-hyun in 1994, with 21 home runs. Kang’s first home run in the KBO was also the first home run by any player in the league in the 2018 season.

Kang was only one home run short of the all-time KBO rookie home run record, which Park Jae-hong achieved in 1996. Kim Hyun-soo of the LG Twins won the highest batting average award, at .362, while Jeon Jun-woo of the Lotte Giants and Park took home two titles. Jeon had the highest number of hits, at 190, and runs, at 118, while Park won the award for highest on-base percentage, at .457, and slugging average, at .718. Park Hae-min of the Samsung Lions had the most stolen bases with 36.

For the the pitching awards, the Bears’ Lindblom won best ERA with 2.88, while Seth Frankoff of the Bears picked up the most number of wins, at 18, and best winning percentage at .857. Keyvius Sampson of the Hanwha Eagles topped the league in strikeouts with 195. Oh Hyoun-taek of the Giants had the most holds with 25 and Jung Woo-ram of the Eagles had the most saves with 35.